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IS THERE ANY WAY OUT OF THIS?


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:confused: MY QUESTION IS HOW HARD IS IT TO WORK WITH A CREDIT CARD COMPANY IF YOUR NOT BUT ABOUT 30 DAYS LATE? WE RECIEVED A HOME EQUITY LOAN FOR $19000.00 AND HAVE CREDIT CARD DEBT OF $48,000.00 AND WE ARE SELF EMPLOYED AND HAD MAJOR LOSSES TAKE PLACE AND I DO NOT SEE PAYING ON CREDIT CARDS FOR THE REST OF MY LIFE, SHOULD I TAKE THIS MONEY AND ATTEMPT TO SEE IF THE WILL SETTLE IF I WILL CUT THEM A CASHIERS CHECK THE NEXT DAY OR SEE IF THEY WILL TAKE OF SOME INTREST AND LATE FEES AS THE CCC AGENCYS DO? I WOULD LIKE TO TRY TO PAY THESE THINGS OFF BUT IT SEEMS IF I STOW MY MONEY AWAY FOR THREE MONTHS AND STAY BEHIND I WOULD HAVE A BETTER CHANCE BUT WHAT IF I TOLD THEM THIS WILL BE IT AND I MIGHT NOT HAVE THIS IN THREE MONTHS? HELP~~~ I DO NOT WANT TO DESTROY MY CREDIT BUT I DO WANT RID OF ALL THE CREDIT CARD DEBT!

[Edit by out of control on Friday, February 28, 2003 @ 05:55 PM]

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It's pretty simple.

Float a number at them and see what they say.

In the past, I have offered 50%, with a promise to pay in 10 days of acceptance. However, I wanted the account to show paid in full, no lates.

On two occasions, they jumped at it. I always wondered if I should have offered less, but figured this was kind of fair because of all the late charges, high interest rated, over limit stuff, etc.

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THANKS FOR THE REPLY, SHOULD I CONTACT USING TELEPHONE OR SHOULD I DO THIS ALL THROUGH WRITING AND WHEN I TRY TO NEGOTIATE SOMETHING WHO SHOULD I SPEAK TO WITH SAY...DISCOVER? LAST WILL THEY CONSIDER IT EVEN THOUGH I'M NOT BUT 30 DAYS LATE BUT IT JUST SO HAPPENS I HAVE MONEY DUE TO A HOME EQUITY LOAN, BUT IT DOES NOT CHANGE OUR HARDSHIP THEY WE HAVE COME INTO? LAST HOW DO I GO ABOUT TRYING TO DISCUSS CHANGEING THE BALANCE OR INTREST, OR WILL THEY JUST LAUGH? WHY DOES IT HAVE TO TAKE WAITING IT OUT AND COMPLETLEY DESTROYING OUR CREDIT TO HELP WITH OUR HARDSHIP?

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Here is another way that does work as I have done it. I have also mentioned this in other posts. This one has a little twist to it. Take half of your money and distribute to each CC with the highest interest rate getting the most. Say it is $10,000.00 w/19% interest. Send them $3000.00. Next one is $10,000.00 w/12% interest. Send it $2500.00. Do this to all until you have distributed all of the funds. These numbers are for example only. Next statement, look at balances and minimums starting with the highest interest. Say your minimum is $250.00. Add $75.00 making it $325.00. Do this to all others. Say this all adds up to an extra $500.00 each month going out. Don't worry as your end result will pay off. Next, when you have adjusted to this extra amount going out, add another $200.00 each month and handle the same way. When a card is now zero, take the monthly for that and distribute to the others. You will have paid them off faster and have not damaged your credit. Remember, the interest and minimum payments are your enemy as the least amount you pay, the longer it will take to pay it off. You can also do this by paying the one with the lowest balance and work up to the highest balance, or however you want to apply it. The next important thing to remember is to keep the zero cards at a minimum. What I mean is spend only what you have to, such as gas for the car. No special night outs for awhile. As I said before stop with the daily Expresso & Bagel. Save it for a payday treat. Don't spend unless it is actually needed. You will be surprised how much money you can save each month to compensate this way of paying. Once you have achieved your goal, keep the cards at a reasonable amount which can be paid monthly or even within two months. On the remaining balance of your loan, don't blow it. Keep it on hand to handle your monthly obligations along with any income you receive. If you are still having unforseeable losses, then maybe you or your wife should get another job for awhile until you can recover. Once you have achieved your goal, you could still have some money saved and be able to recover without damaging your credit. If you have doubts, sit down and create a chart and you should be able to see the end result following this plan.

I had someone email me asking if I was a Credit Counselor. The answer is no, I am not. Like others, I share what has worked for me or what has been told to me. If it does, I am quite happy. If it doesn't, I am sorry. I feel the same as everyone else. One way does not always work for the other as you may have to adjust. My goal is to show you a way to do it. If you can take what I say and alter it to your benefit, go for it. Just be sure to share with someone else who might need help. My word is not law. It is only a suggestion. As to what I do for a living, I'm retired.

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Ironman - - FYI. I devised this from how I had managed my 401k. I did the same thing. I started at 3%, then when not felt, increased to 6%,and so on. So, just applied to getting rid of debt w/o hurting myself. As I said above, interest and minimum payment are the enemy. So, ask yourself "How do I beat the enemy?". Larger payment means more to principal and more to principal means less to interest. End result is ZERO balance.

BTW, I had to cash my 401k due to an emergency medical with a family member. Oh well, family is more important then money. Also, I am not happily retired, just retired. One day, I may explain.

[Edit by retmar on Sunday, March 2, 2003 @ 11:42 PM]

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<blockquote>Originally posted by out of control

:confused: MY QUESTION IS HOW HARD IS IT TO WORK WITH A CREDIT CARD COMPANY IF YOUR NOT BUT ABOUT 30 DAYS LATE? WE RECIEVED A HOME EQUITY LOAN FOR $19000.00 AND HAVE CREDIT CARD DEBT OF $48,000.00 AND WE ARE SELF EMPLOYED AND HAD MAJOR LOSSES TAKE PLACE AND I DO NOT SEE PAYING ON CREDIT CARDS FOR THE REST OF MY LIFE, SHOULD I TAKE THIS MONEY AND ATTEMPT TO SEE IF THE WILL SETTLE IF I WILL CUT THEM A CASHIERS CHECK THE NEXT DAY OR SEE IF THEY WILL TAKE OF SOME INTREST AND LATE FEES AS THE CCC AGENCYS DO? I WOULD LIKE TO TRY TO PAY THESE THINGS OFF BUT IT SEEMS IF I STOW MY MONEY AWAY FOR THREE MONTHS AND STAY BEHIND I WOULD HAVE A BETTER CHANCE BUT WHAT IF I TOLD THEM THIS WILL BE IT AND I MIGHT NOT HAVE THIS IN THREE MONTHS? HELP~~~ I DO NOT WANT TO DESTROY MY CREDIT BUT I DO WANT RID OF ALL THE CREDIT CARD DEBT!

[Edit by out of control on Friday, February 28, 2003 @ 05:55 PM]

</blockquote>

Credit Card Collectors don't give any breaks to people who are 30 days. At 30 days they figure they can collect the whole thing, plus interest and every fee they can pile on. In order to be a candidate for a settlement you would have to have been charged off (180-plus days late), and probably no payments for more than a year. They won't negotiate settlements if they think they can collect. They have to believe they will never collect to be amenable to a settlement.

You can't have it both ways - negotiate a settlement AND keep sterling credit. One of them ain't gonna happen.

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Credit card lenders do however have hardship programs whereby after you disclosure all of your financial affairs they come back with a settlement offer. DISCOVER BANK however, I'm not sure about, and they're a real pain in the buttocks to deal with. In one sense, you're in the drivers seat being self-employed because you don't have wages to attach, unlike people who are employed by others. Waiting a while may work for you and you could also work with a debt mediator. Doing nothing may be OKAY as well so long as you don't have bank accounts or real property they can lien if they later prevail in a judgment against you. Obviously your first priority would be your mortgage and home equity loan.

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:mad: I did contact Discover about their hardship program and they agreeded to let me knock my payment down and work with the intrest and stop late pays. In the meantime they also said they would stop activity on my Discover card and report a closed by grantor mark on my credit report, so whats this mean? Is this worth doing or will it effect my credit as bad as settling or not paying monthly?
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Closed by Credit Grantor is a slight derogatory, but nowhere near a derogatory as a Chargeoff. If you intend to pay, get them to work with you by at least eliminating interest, reversing late payment charges and possibly reaging your account. In the meantime, your account will be closed for a while to new charge activity.

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